AUDCAD Technical Analysis Report 8 May, 2024
- On May 8, 2024, the AUDCAD currency pair is expected to fall further towards the next round support level of 0.9000.
- This prediction comes after the pair recently reversed up from a resistance zone located between the strong long-term resistance level of 0.9050 and the upper daily Bollinger Band.
- The downward reversal from this resistance zone created the daily Japanese candlesticks reversal pattern Shooting Star, which halted the previous short-term impulse wave iii.
Market Analyst Dmitry Chernovolov predicts a potential fall in the AUDCAD currency pair, based on recent technical analysis and market trends.
Reversal from Resistance Zone
The AUDCAD currency pair recently reversed from a resistance zone located between the long-term resistance level of 0.9050, which has been reversing the pair since July of the previous year, and the upper daily Bollinger Band. This reversal has resulted in a bearish sentiment towards the Australian dollar.
Implications of the Shooting Star Pattern
The downward reversal from the resistance zone resulted in the formation of a daily Japanese candlesticks reversal pattern known as the Shooting Star. This pattern typically indicates a potential price top and reversal, suggesting that the AUDCAD currency pair may be expected to fall further towards the next round support level of 0.9000.
Market Sentiment and Indicators
Given the strength of the resistance level of 0.9050 and the bearish sentiment towards the Australian dollar, coupled with an overbought reading on the daily Stochastic indicator, the AUDCAD currency pair is likely to experience a downward trend. Market analysts and traders should monitor these key levels and indicators closely for potential trading opportunities.
Conclusion
In conclusion, the AUDCAD currency pair is expected to fall further towards the next round support level of 0.9000, based on recent market trends and technical analysis. Traders and investors are advised to keep a close watch on the pair’s movements and adjust their strategies accordingly.
